On January 7, 2026, Netflix, Inc. expressed its strong support for Warner Bros. Discovery’s (WBD) Board of Directors, which has reaffirmed its commitment to the merger agreement between the two entertainment giants. This endorsement comes in the wake of WBD's recommendation to its stockholders to reject a revised acquisition offer from Paramount Skydance Corporation (PSKY), made public on December 22, 2025.

WBD Board's Resolution

Following an extensive review process that involved independent financial and legal advisors, the WBD Board concluded that the merger with Netflix represents the best path forward for its stockholders. The co-CEOs of Netflix, Ted Sarandos and Greg Peters, emphasized the value of this partnership, stating, "The WBD Board remains fully supportive of and continues to recommend Netflix's merger agreement, recognizing it as the superior proposal that will deliver the greatest value to its stockholders, as well as consumers, creators, and the broader entertainment industry."

Details of the Merger Agreement

The merger agreement, initially announced on December 5, 2025, outlines that Netflix will acquire Warner Bros. along with its film and television studios, HBO Max, and HBO in a cash-and-stock transaction valued at $27.75 per WBD share. This gives the merger a total enterprise value of approximately $82.7 billion, with an equity value of $72.0 billion. Importantly, the agreement's financing structure is not subject to review by the Committee on Foreign Investment in the United States (CFIUS), ensuring a smoother path to closing.

Moreover, the merger will maintain the planned separation of WBD's Global Linear Networks business, Discovery Global, which is anticipated to be completed in the third quarter of 2026.

Regulatory Engagement and Next Steps

Netflix has already filed its Hart-Scott-Rodino (HSR) filing and is actively engaging with competition authorities, including the U.S. Department of Justice and the European Commission. The company remains dedicated to collaborating with WBD, regulators, and stakeholders to facilitate a seamless transaction. The merger is expected to close within 12 to 18 months from the initial agreement date.

For stakeholders seeking continuous updates on this high-profile merger, Netflix has launched a dedicated website, netflixwbtogether.com, which provides ongoing information and resources regarding the transaction.

Future Implications

The collaborative effort between Netflix and WBD is poised to reshape the entertainment landscape significantly. By combining their complementary strengths and shared commitment to storytelling, the merger aims to enhance the content offerings available to audiences, both in homes and theaters. This partnership is expected to create expanded opportunities for creators and foster a more vibrant and competitive entertainment industry.

Final Notes

As Netflix prepares for this transformative merger, it intends to file a registration statement with the U.S. Securities and Exchange Commission (SEC). This will include a prospectus regarding the Netflix common stock to be issued in connection with the merger, along with a proxy statement for WBD's stockholders. Stakeholders are encouraged to keep an eye on these forthcoming documents for crucial information regarding the merger.

This merger marks a pivotal moment for both companies, with the potential to redefine their futures in the fast-evolving entertainment sector.

Original press release